@Justin Petrides
No way. For example one of my contractors who rented to his sister is now in the process of taking her to small claims court
I also get requests from my contractors to rent my property. I always tell them that if they want to rent from me prepare to never do business with me again. They usually pass on that offer.
Why put yourself in a difficult situation when it can easily be avoided
@Justin Petrides
Let me add to the crescendo of "no" votes by saying, ALSO "no" to a friend of a friend. If you have to evict the friend of your friend, guess what happens with your friend?
@Justin Petrides
Just to make sure I got it right? You are going to discount your price by half (of market rate)? If your doing it as a business, you need to offer that discount to everyone. In my real estate transactions I now require everyone to sign a contract so they know its all business, and I use contracted services for processes. The way I look at it, that way there is no confusion and expectations are spelled out. Now, for any friend or family that have signed there has been no issues. Before, I didn't require the contract and it was a hassle.
@Justin Petrides no renting to family or friends thats my policy. I've had personal experience plus heard alot of stories of those you thought would be the best tenants, until something goes wrong. Now you have alot more riding on that decision.
@Justin Petrides if you follow commercial standards and treat them from the beginning as you would an unrelated third party (standard lease, credit check, deposit, etc)you should be fine.
I think it is best to avoid this. If your friend has no money or possibly won’t have the money after a year to buy the house there is always the possibility of life “happening” and now he’s not paying you. Sure things could work out but if you truly value your friendship, I would avoid this situation. Besides, even with the small chunk of income your friend is giving you, he has no skin in the game. You seem like a good friend, but your end goal is to run a successful business right?
@Justin Petrides
Hous hacking yes. Rental no. Rent to own no. My guess is that if you thought it was a good idea you would not have reached out and asked here. However if you do go through with any of the options just make sure you treat it like a business and make sure everyone knows it is a business and all proper documentation is in place.